On October 26, 20x1, Entity A acquired 100% interest in Entity B for 2,800,000. On this date, Entity B's identifiable assets and liabilities have fair values of P4,000,000 and 1,600,000, respectively. Included in Entity B's liabilities are cash dividends of 280,000 declared on October 1, 20x1, to shareholders of record on November 1, 20x1, and payable on December 1, 20x1. sirement: Compute for the goodwill.
On October 26, 20x1, Entity A acquired 100% interest in Entity B for 2,800,000. On this date, Entity B's identifiable assets and liabilities have fair values of P4,000,000 and 1,600,000, respectively. Included in Entity B's liabilities are cash dividends of 280,000 declared on October 1, 20x1, to shareholders of record on November 1, 20x1, and payable on December 1, 20x1. sirement: Compute for the goodwill.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 38P
Related questions
Question
![liabilities assumed have deferred tax consequences, but do not
affect their tax bases. The income tax rate is 30%.
Requirement: Compute for the goodwill.
4M-494m > (940K
Consideration transferred
10. On October 26, 20x1, Entity A acquired 100% interest in Entity
B for P2,800,000. On this date, Entity B's identifiable assets and
liabilities have fair values of 4,000,000 and 1,600,000,
respectively. Included in Entity B's liabilities are cash
dividends of P280,000 declared on October 1, 20x1, to
shareholders of record on November 1, 20x1, and payable on
December 1, 20x1.
Requirement: Compute for the goodwill.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa089ed3b-5e39-4c72-b372-fa160a2014d3%2F5b77ef94-574f-4050-bdc2-5746b79f1c5f%2Fba1hqmv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:liabilities assumed have deferred tax consequences, but do not
affect their tax bases. The income tax rate is 30%.
Requirement: Compute for the goodwill.
4M-494m > (940K
Consideration transferred
10. On October 26, 20x1, Entity A acquired 100% interest in Entity
B for P2,800,000. On this date, Entity B's identifiable assets and
liabilities have fair values of 4,000,000 and 1,600,000,
respectively. Included in Entity B's liabilities are cash
dividends of P280,000 declared on October 1, 20x1, to
shareholders of record on November 1, 20x1, and payable on
December 1, 20x1.
Requirement: Compute for the goodwill.
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